Moratorium on bankruptcy to be introduced in Russia

Joint meeting of the Presidium of the Coordination Council and the State Council working group on countering the spread of the coronavirus infection was held via videoconference and chaired by Prime Minister Mikhail Mishustin, website of the government reports.

Prime Minister listed the measures “designed to support small- and medium-sized businesses in the most affected sectors. In particular, deferrals on lease and tax payments, excluding VAT, as well as deferrals on insurance premiums for micro-businesses, as well as a moratorium on bankruptcy.”

He also mentioned “Two special lending programs which should help small businesses tide over this difficult period. This includes a six-month delay in loan repayment with payments of no more than one third of the interest rate, as well as interest-free loans for paying salaries to employees, and a deferral on lease payments for leases on publicly-owned and commercial property. During the next six months, small firms will be making lease payments based on their actual revenue, and they will repay the debt accumulated over this time within 12 months in installments.”

“To take into account the interests of the commercial property owners who are willing to work under these arrangements, we recommend that the regions provide them with property tax rebates. In addition, we will issue a ban on disconnecting small and medium-sized enterprises from utilities and electricity, even if they don’t pay the bills on time. No penalties will be charged on this debt, and it will also be possible to repay it in installments,” Mishustin said. “Other measures to support SMEs include automatic renewal of existing permits and licenses. To promote continuing sales for small businesses, we are suggesting that state-owned companies not reduce their purchases from small and medium-sized businesses. Payment deadlines should be observed strictly as well and not exceed 15 days.”

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